Fairgoers play on the Xbox sales space on the Cologne Commerce Honest Middle throughout the opening day of Gamescom 2025 in Cologne, Germany, on Aug. 20, 2025.
Ying Tang | Nurphoto | Getty Photos
Hours after Apple announced value will increase for MacBooks and iPads, Microsoft stated customers also can anticipate to pay extra for Xbox sport consoles, reflecting rising part prices.
Beginning Aug. 1, Xbox Collection S consoles containing 512GB of storage will go up by $100 to about $500, Microsoft stated Thursday, whereas fashions with 1TB will improve by $150 extra. The entry-level Xbox Collection X will now begin at about $750.
“Final October, we increased XBOX console value by $20-$70 within the U.S.,” the corporate stated in a blog post. “We hoped one other value improve wouldn’t be essential, and now we have spent the final a number of months working with suppliers on choices.”
Microsoft stated “console storage and reminiscence costs have elevated by greater than 2.5x and we anticipate one other doubling by the autumn of 2027.”
Reminiscence producers equivalent to Micron and SK Hynix have a restricted capability, and they’re prioritizing high-bandwidth reminiscence for synthetic intelligence infrastructure, equivalent to Nvidia‘s graphics processing models. Producers are elevating costs to mirror increased demand, leading to wider profit margins.
That places a pressure on customers seeking to purchase gadgets equivalent to smartphones, tablets and computer systems. Apple’s announcement on Thursday got here after CEO Tim Cook instructed The Wall Road Journal that value will increase had develop into inevitable.
“The whole shopper electronics trade is battling the present elements disaster, however the results are notably exhausting on consoles,” the Xbox unit stated within the publish. “Not like telephones, computer systems, audio system, and different shopper gadgets, consoles are usually not offered at a revenue, however as a substitute for lower than they value to make.”
Microsoft stated the two TB Xbox Collection X, launched in 2024, will not be out there.
Microsoft shares sank virtually 4% on Thursday. Apple’s inventory dropped 5%.
WATCH: Microsoft now a value stock
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